How to Fabricate Biocompatible 3D Microstructures in Seconds? A Quantum Jump in Nano Manufacturing & Regenerative Medicine

Nano-engineers at the University of California, San Diego, have developed and demonstrated a novel and highly innovative technology that can fabricate three dimensional (3D) micro-structures out of soft, biocompatible hydrogels in a matter of seconds.  The Chen Research Group — spearheaded by nano-engineering professor Shaochen Chen — is bringing nano and structural engineers, medical device labs and visual artists into a collaborative environment under one roof to pioneer a 21st century renaissance in next generation technology.  The synthetic fabrication of complex natural structures like spirals, flowers and hemispheres, has now been demonstrated via this new technology.

Regenerative Medicine: Repairing Damage caused by Heart Attacks and Replacing Organs by Printing Them

1. The goal of many biomedical researchers is to find a way to grow new tissues or even organs for those patients who need them.  To do that, the cells involved need to have a structure they can grow on, like plants growing on a cage or trellis.  

2. Near term, the 3D microstructures technology which is now being pioneered, could lead to better systems for growing and studying cells, including stem cells, in the laboratory.  

3. Medium term, the goal is to be able to print smaller biological tissue patches for regenerative medicine. For example, in the future, doctors may be able to repair the damage caused by heart attacks by replacing damaged tissues with newly printed biocompatible synthetic tissue.  

4.  In the long term scientists hope to see this new technology, or indeed an evolution of this technology, used to actually print complete tissues and organs, ready for implanting into patients.  

5.  The key future goal in the development of this innovative technique is for humankind finally to acquire the capability of biological tissue and organ printing for use in full fledged regenerative medicine and advanced body repair.  This could extend the average life span of human beings by decades.

Quantum Jump in Speed of Fabrication

The key benefit of this brand new technology is the ability to print microstructures in a few seconds whereas up until now other three-dimensional fabrication techniques — like two-photon photo-polymerisation — used to take hours to fabricate a similar structure.   This type of new technology has already been the subject of science fiction: many “replicants” have been fabricated instantaneously via “3D replicators” using advanced laser controlled technology.  Are we almost there? 

Significance of Biocompatible 3D Micro-Manufacture

Why is this new bio-fabrication technique “Dynamic Optical Projection stereo Lithography” or DOPsL so significant? The immediate application of this technique lies in the growth and study of the cells of living organisms, especially stem cells in laboratories.  DOPsL has three main advantages over photolithography and micro-contact printing, the two main techniques currently used to build microstructures:

1.  Operates with high resolution which is needed when trying to mimic fine details found in nature, such as blood vessels;

2.  Creates complex 3D structures, instead of the simpler 2D patterns the other methods are mostly limited to; and 

3.  Fabricates faster than other methods to produce 3D micro-structures.  

How does DOPsL work?

The bio-fabrication technique called “DOPsL” uses a computer projection system and precisely controlled micro-mirrors to shine light on a selected area of a solution containing photo-sensitive biopolymers and cells. This photo-induced solidification process forms one layer of solid structure at a time, but in a continuous fashion, like a 3D printer. 

Existing Fabrication via Printing

Micro-contact printing and photolithography are existing fabrication techniques which can only produce two-dimensional structures and simple geometries. Another technique that can print three-dimensional structures called stereo lithography is best suited for large objects such as car parts and tools.  The new DOPsL technology leap-frogs all these existing solutions both in terms of refinement of 3D resolution at a micro-scale and speed-of-delivery of manufacture or fabrication via high speed printing!

Conclusion

Nano-engineering specialist Chen Research Group has essentially demonstrated the capability of printing three-dimensional blood vessels and tissue in mere seconds out of soft, biocompatible hydrogels. Being able to print blood vessels within tissue is essential to achieving the promise of regenerative medicine because this is how the body distributes oxygen and nutrients.  An engineered biomaterial without the blood vessels is not of much use to a living organism including human beings. 

Source: http://dkmatai.tumblr.com/post/31618706630/how-to-fabricate-biocompatible-3d-microstructures-in

Doing business with Americans? HSBC has some (hilarious) cultural advice

by Tamsin McMahon

So you want to do business with Americans, but worry about overcoming the cultural nuances that separate us from our neighbours to the south? HSBC bank has a handy Expats Guide to doing business in different countries that offers an (unintentionally) hilarious glimpse at the subtle differences between Canadians and Americans, including Canadians’ apparent unease with giving their dinner guests a house tour and Americans’ love of using sports analogies in business negotiations.

Here are some of the cultural traits HSBC recommends you keep in mind when doing business across the border (and we are quoting):

ETIQUETTE FAUX PAS

Canada:

Avoid the “V” for victory and the “thumbs-down” gestures.
Use your entire hand to point, not just your finger.
Don’t compare Canada with the US
U.S.:

[Avoid] anything that might be misinterpreted as sexual harassment
[Don't] boast about your accomplishments and achievements, salary, income or belongings
[Don't] stand too close to someone you’re speaking with, lest you impose on their sense of personal space
 CULTURE

Canada:

People from the Atlantic Provinces (Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland) tend to be a bit more reserved and provincial.
Ontario is Canada’s business hub, and its inhabitants are generally businesslike and conservative.
Western Canada (Alberta, Manitoba and Saskatchewan) tends to be open, friendly and relaxed.
British Columbia can be thought of as being somewhat unconventional, and often is touted as the future of the nation.
Quebec’s people have a proud French cultural identity, and tend to be highly independent.
People from the north retain a strong pioneer spirit.
U.S.:

Americans are raised from childhood to see themselves as distinct, separate individuals who create their own destinies and are responsible for their own lives. As such, they consider themselves accountable for their decisions. They view themselves as independent and self-reliant, and for this reason can appear self-centred to those from less individualistic cultures.

ATTENDING A DINNER PARTY

Canada:

Be punctual, though 15 minutes late is fine for a small gathering or party.
Offer to help prepare before or clean up after.
Don’t ask for a house tour, since Canadians are private and only allow guests in their public rooms as a rule.
Don’t rest elbows on the table, and always keep your hands visible.
Continental style reigns, with fork in left hand and knife in right, though American style (switching your fork from hand to hand) is permissible.
U.S.:

Be on time for dinner, and no more than 10 minutes late for small gatherings.
You may be told to make yourself at home, and you’re expected to do so, and to ask for anything you require.
You may be given a tour of the house.
American table manners involve holding the fork in the right hand and using it to eat. Hold it tines up. The knife cuts and spreads things. To use it, switch the fork to your left hand. To eat, switch your fork back to your right hand.
BUSINESS MEETINGS

Canada:

Most Canadians prefer business to be concise, and meetings begin with a minimal amount of small talk. However, there may be more time spent on relationship-building in Quebec.
Meeting with Anglophones are more democratic. Meetings with Francophones may include less involvement of lower level employees.
Feelings are not considered important in business. It is better to state information with the words “I think” rather than “I feel”.
U.S.:

Meetings generally start with little or no small talk.
Americans may be blunt when countering ideas that others put forward, and interruptions may be common in an animated discussion.
When Americans say “Yes” or “No” they mean it. “Maybe” means “It might happen”; it does not mean “No”.
BUSINESS NEGOTIATIONS

Canada:

Communication is generally direct. Canadians have no difficulty saying “no.”
Strive to create compromises.
French Canadians will carefully analyze every detail of a proposal, regardless of how minute.
U.S.:

American negotiators can become frustrated if too much time is devoted to relationship building rather than negotiating.
Unlike many cultures where eloquence is important, Americans are more concerned with making their point.
It may at times seem that American negotiations are run by lawyers. This is because there is strict government legislation concerning many facets of business.
COMMUNICATION STYLES

Canada:

Communication is moderately indirect. Although most Canadians can disagree, they prefer to do so with tact and diplomacy. They prefer to maintain an understated demeanour. Their communication style is pragmatic and relies on common sense rather than aggression. If you come from a more direct culture, you may wish to soften your demeanour and tone so as not to appear threatening.

Greetings tend to be relatively informal, which demonstrates Canadians’ belief in egalitarianism.
Canadians enjoy debating issues. Being able to argue your position with informed opinion will help you gain respect.
Making eye contact during conversation adds to the credibility of the communication. Sustained eye contact throughout a conversation is expected.
U.S.:

For the most part, Americans do not hesitate to ask direct questions. These are not meant to be offensive. Their reliance on speaking concisely and relying on facts can make American speech seem rude, aggressive, blunt or impatient to people from cultures that are more relationship-oriented. Since many Americans speak only English, they are not always sensitive to the challenges someone faces when communicating in a foreign language. Americans often used sporting analogies that are not easily understood. The following are ones frequently used in business:

Ballpark figure: Give a good estimate
Play hardball: Compete well
Drop the ball: Make a serious mistake
Monday morning quarterback: Someone who tells you what you should have done after the fact.

Source:http://www2.macleans.ca/2012/07/20/doing-business-across-the-border-hsbc-has-some-hilarious-cultural-advice/

Mr. V. Kurien: India’s White Knight

Bring me men to match my mountains, Bring me men to match my plains, 
Men with empires in their purpose, And new eras in their brains.
-- Sam Walter Foss, from "The Coming American", July 4, 1894

Y K Alagh, former member of planning commission and a long time associate of Verghese Kurien, has an interesting anecdote to share if you ask him how Kurien was different form the several intellectuals India has produced.

“Once Kurien told me, ‘You are a friend and you are very good but you are much too general Yoginder – you don’t concentrate on one thing.’”

To which Alagh replied, “I know, you are a Spartan and I am an Athenian! I think.”

While both Spartans and Athenians belonged to Greece, Spartans were a militaristic race, which believed in expanding their area of control and preferred the rule of few (or even one) over many. Athenians, on the other hand, were a more democratic lot.

As a person, Kurien was a man in hurry. He had a vision and he was out to achieve it.  He laid a lot of stress on covering the last mile. As such, he was known to start in the reverse order when planning for a new venture like introducing a range of cheese.

He was very hands on with everything he did. In fact, once when a crane went out of control, Kurien flung himself and avoided any mishap. He did not care that in doing so he actually cut his thigh and bled profusely.

“That typified the man,” recalls Alagh.


The Kurien Doctrine  
Kurien’s main emphasis was on improving the marketing opportunities for the Indian farmer without which the farmers were dependent on middlemen, who cornered most of the profits and stunted the growth of rural India.

Therefore, he not only worked hard in creating the best marketing platform for farmers himself, he also founded the Institute of Rural Management at Anand (IRMA) in 1979 to create a cadre of professional managers imbued with his understanding of the rural India.

Many young professionals like Sanjiv Phansalkar, Program Leader at the Sir Dorabji Tata Trust, started his career from IRMA just to be associated with Kurien.

“The simplicity and power in his argument that unless you put the means of production in the hands of the producer you cannot change their fate was simply great,” says Phansalkar who joined IRMA in 1982.

Ironically, it is this very thought that was questioned towards the fag end of Kurien’s career when there was a push to delinking production and marketing functions of the co-operatives. 

His protégé, Amrita Patel, who succeeded him as the Chairman of NDDB in 1998 was spearheading the move to turn co-operative to producer companies and hiving off marketing side of business into separate entities.

Kurien bitterly opposed the move as he feared the private players like Nestle and Britannia will eventually take over the marketing yet again.  In a sense, he felt his life’s work was being destroyed.

But the relative weakness of the cooperative movement in other parts of the country as well as the newer trends of business management only underline the fact that the success of Kurien’s model in Gujarat was both a product of his own leadership as well as the existing economic climate in the country.

Another episode when he found himself swimming against the tide was in the late 1990s when there was a growing demand to amend the Milk and Milk Products Order (or MMPO), which regulated the milk processing business in the country. As the head of NDDB, Kurien had restricted the milk processing business to the existing co-operatives. The Gujarat Co-operative Milk Marketing Federation (GCMMF), which he headed, and its brand Amul benefitted hugely from such a restriction. But it was an untenable stand in an increasingly liberalized economy were many private players who wanted to enter the business.

Ultimately, after prolonged deliberations the NDA government diluted the MMPO in 2000. Experts who were close to the deliberations believe it helped increasing the productivity by 5% to 10%.  


A Reluctant Start
In her book, “The Amul India Story,” Ruth Heredia states that Verghese Kurien was actually quite an “unlikely recruit” in the field of dairying. 

It was 1945 and the Second World War had just ended. The government in India approved 500 new scholarships in UK and US for young Indian professionals who would be required in the post war reconstruction.

24 years old Verghese Kurien, a mechanical engineer from Madras University had barely completed a year of apprenticeship with the Jamshedpur based TISCO (Tata Iron and Steel Company). But he wasn’t enjoying his time there.
As he sat before the interview board, he was hoping to get an opportunity to study metallurgy. 
“What is pasteurization?”
A surprised Kurien gave a half-baked reply, “A process of boiling milk at a certain temperature.” 
“Thank you,” said the interviewer. “You have been selected for ‘Dairy Engineering’”
Reluctantly, Kurien said yes since it was the only scholarship left available by then and went on to complete his Masters from Michigan State University.

However, no one could have imagined how this odd event would shape the future of millions of farmers in Independent India.

Upon his return to India, Kurien was sent to a remote district of Gujarat to help a milk co-operative under instructions of Sardar Vallabh Bhai Patel, India’s first Home Minister.

The little known town, Anand in the Kaira district, did not hold a lot of promise for the young and impatient Kurien. But at the last moment, he was persuaded to stay back by the founder of Kaira District Co-operative Milk Producers Union Ltd., Tribhuvandas Patel, a tall leader in his own right. After this there was no turning back for Kurien.

He dedicated himself to the task of strengthening the co-operative and relieving the milk farmers from the clutches of intermediaries. It was not an easy task. India had just gained independence and there was a natural suspicion surrounding anything that resembled the colonial rule. Moreover, there were deep-set caste divisions and gender biases that Kurien and his team had to deal with. Not to mention the resentment among the existing middlemen who tried everything in their power to derail the nascent efforts.

“It was nothing short of a miracle,” says Shreyans Shah, editor and publisher of Gujarat Samachar  

By 1955, Kurien led to the development of the iconic Amul brand for selling the milk of the co-operative.  In 1965, Kurien’s leadership caught the attention of the Prime Minister Lal Bhadur Shashtri, who was great sympathizer of the farmers.  He asked Kurien to lead the National Dairy Development Board (NDDB) and replicate the Co-operative success story of Amul across the country. In 1970, with the help of the World Bank, the NDDB started “Operation Flood” which, over the next 26 years, transformed India from a milk importer to world’s top most milk producing country. 

Kurien came to be known as the “Milkman of India” and the “Father of White Revolution” apart from being awarded the Magsaysay Prize (1963), Padam Shri (1965), Padma Bhushan (1966), Wateler Peace Prize (1986) and the World Food Prize (1989). 

Today close to 14 million farmers are organized in over 133000 village co-operatives and produce over 25 million litres of milk everyday. Milk production in India has risen from just under 21 million tonnes annually in 1970 to 117 million tonnes in 2010. In comparison China’s production could only rise from 2 mn tonnes  to 41 mn tonnes over the same period.

Veteran filmmaker, Shyam Benegal, regards Kurien, along with M S Swaminathan (father of India’s Green Revolution), as the two greatest heroes of independent India. Benegal directed the Oscar nominated movie on the rise of milk co-operative movement from Gujarat.

 “His work was charged with idealism and he completely changed the economics of milk production in the country,” says Benegal.


Source: http://forbesindia.com/article/special/v-kurien-indias-white-knight/33719/1
Read more: http://forbesindia.com/article/special/v-kurien-indias-white-knight/33719/1#ixzz26XVoHaUp

How to Protect Yourself from Investment Scams

If the deal seems too good to be true, it probably is. If you have an offer of assignment or to rent or lease a U.S. Treasury security for a certain period, it is, in all likelihood, bogus. Here are some ways to check the validity of offered securities, and how to protect yourself:

Be especially wary of securities offered for assignment or offered as proof of financial stability that bear the CUSIP number of 912810BU1.
Demand that the offeror produce the securities or evidence of ownership. If they can't, you should not consider the offer genuine.
Demand a statement from the financial institution holding book-entry securities. The statement should be sent to you directly.
Question the validity of any securities and information furnished to you with a trusted and informed source, such as your broker, accountant, or lawyer.
Confirm that the certifying or holding organization is legitimate, still in business, and how long it has been in business. Call the organization for specifics on the purported existence of the securities.
Ask if the person offering the investment is registered with the SEC or with the securities agency in the state or country where you live.
Do not assume that people or organizations are who they say they are.

Source: http://www.treasurydirect.gov/instit/statreg/fraud/fraud_howtoprotect.htm

Prime Bank Instrument Fraud

Prime Bank Instrument fraud schemes have attracted significant international attention, since individuals and organizations have lost billions of dollars worldwide. "Prime Bank Instrument Fraud" is the general term given to fraud schemes that go by many different names, including:

Prime Bank Debentures
Prime Bank Guarantees
High-Yield Trading or Roll Programs
Standby Letters of Credit
International Chamber of Commerce (ICC) 3039 or 3034 Letters of Credit
Guaranteed Bank Notes
Discounted U.S. Treasury Securities
International Monetary Fund Backed Securities
Common Examples

In these schemes, the fraud artists purport to have access to a secret trading program sanctioned by the Federal Reserve Bank, the Treasury Department, the World Bank, the International Chamber of Commerce, or the International Monetary Fund. Read about a fairly common example of how this fraudulent world is explained to potential investors. The more the explanation given to you resembles this explanation, the more likely you're being offered a fraudulent investment.

Various "prime bank" trading programs or similar trading programs that offer secret, private investment markets, which purport to offer above average market returns with below market risk through the trading of bank instruments are fraudulent.
Offering such programs, or claiming to be able to introduce investors to people who have access to such programs, violates many federal laws including criminal laws.
There are no "secret" markets in which banks trade securities. Representations to the contrary are fraudulent.
Also, investment programs in which a financial institution is asked to write a letter, commonly referred to as a "Blocked Funds Letter," advising that funds are available in the account, "clean, and of non-criminal origin," and free of "liens or encumbrances" for a certain time frame, are frequently used to perpetrate fraud schemes. These letters have no use in legitimate banking circles.

The symbols, names, and products of the U.S. Treasury Department are misused in these schemes in several ways. Some schemes claim that the U.S. Treasury:

Backs or approves such programs
Has a "secret trading room"
Must approve the humanitarian projects connected to these schemes
Has purchased securities for investors to guarantee against loss
Has a way to pool investor funds and buy and sell securities "just like the Rockefellers can."
NONE of these assertions are true.

It is illegal to engage in fraud in the offer or sale of a security. Under most circumstances, it is also illegal to sell securities that have not been registered with the U.S. Securities and Exchange Commission. A security includes the following items: "note," "stock," "bond," and "debenture" and more general terms such as "investment contract" and "any interest or instrument commonly known as a 'security'." Designating such instruments as "loans" does not change their legal status as securities. SEC v. W.J. Howey Co., et. al, 328 U.S. 293 (1946).

Warning Signs

Name dropping
Buzzwords
Excessive secrecy
Over-reliance on authentication
Excessive disclaimers
Unwarranted appearance of professionalism
Big player behind the scenes
Yields are too high
Lack of transactional basis
A secondary market where these investments can be laid off quickly and profitably
Flawed documentation
What to Look For

There are many terms that are commonly seen in documents presented by fraudsters in marketing fraudulent investment schemes. Fraudsters often mimic and misuse legitimate banking terms. Many of the following genuine terms are misused along with those that have no meaning in the real world. They are thrown together in documents that contain a mix of fact and fiction, often confusing to a first-time investor.

Non-circumvention
Non-disclosure
Good, Clean, Clear, and of Non-Criminal Origin
Blocked Funds Investment Program
Prime Bank Trading Program
Federal Reserve Approved
Treasury Approved
Roll Program
Irrevocable Pay Orders
Prime Bank Debentures, Notes, Guarantees, Letters of Credit
Fresh-Cut Paper
High-Yield Investment Program (HYIP)
ICC 3034 or 3039 Letter of Credit
Off Balance Sheet Program
Prime Bank Debenture Trading
Prime Bank Instruments, Notes, Guarantees, Trades, or Letters of Credit
Prime European Bank Letters of Credit
Prime World Bank Debentures or Financial Instruments
Prime Insurance Guarantees
High-Yield Debenture Trading, Financial Programs, Asset Management Programs
High-Yield Investment Programs (HYIP)
High-Yield Promissory Notes or Bank Notes
Guaranteed Bank Notes
Intermediate Bank Notes
Roll Programs or Bank Debenture Roll Programs
ICC 500 or 600 Bank Debenture Instrument
IMF (International Monetary Fund) Stand-by Letters of Credit
IMF Backed Securities, Bill of Exchange, Bill of Equity, or Backed Bonds
Discounted U.S. Treasury Obligations, Renting or Leasing of Treasury Securities
Blocking of Assigned Treasury Securities
"Limited Edition" or Defacto Treasury Securities
US Dollar Bonds, Federal Notes, Medium, or Mid-Term Notes or Bank Notes
Blocked Funds Letters or Investment Programs, Documentary Letters of Credit
Irrevocable Pay Orders, Collateral First Debentures, Money Center Bank
Fresh Cut Paper or Bank Debentures, Bank Paper
Seasoned Bank Debentures
Private Placement Programs
Private Trading Programs
International Certificate of Deposit (LCD)
Irrevocable Bank Purchase Order (IBPO)
Irrevocable Corporate/Confirmed Purchase Order (ICPO)
Irrevocable Prime Bank Commitment
Zero Coupon L/C
More Prime Bank Investment Fraud phrases to watch for:

Secret trading program
Banks or Federal Reserve will deny involvement in these programs
Non-circumvent / non-disclosure Agreements
Funds are "Good, Clean, Clear, and of Non-criminal Origin"
Funds pooled together for minimum trade amounts of $10,000,000 or $100,000,000 (sometimes listed as "Ten [10] Million USD,"and the like)
Interest rates guaranteed from 6% to 100% to 1000% each month
Trades with only the top 10, 25, or 50 banks in the world, such as Barclays or Credit Suisse
Program backed, approved, or sanctioned by the Federal Reserve Bank (FED or FRB), the International Monetary Fund (IMF), or the International Chamber of Commerce (ICC) or the Treasury Department
"Trader," "Facilitator," or "Broker"
Only 5 to 10 "traders" in the world have access to this program; Trader will conduct 40 trades each year.
Percentage of the yield will go to charity, social programs, or humanitarian efforts
U.S. Government Agencies will deny the existence of these programs because the Government does not want your money to leave the U.S.
U.S. Government Agencies try to seize the funds for themselves
"Due 1, 5 or 10 years and 1 day"
"108" bank to bank certificate which guarantees the principle + 8% annual interest
"Funds of non-criminal origin, are legally owned by or assigned for the participation in a specified High Yield Asset Management Program"
Principal is guaranteed and/or secured by letters of credit "The funds will remain in a bank account that only you are signer on. These funds will be used as collateral."
Offshore trust accounts / tax free interest
Can obtain proceeds through Visa debit cards
Advised to remove from legitimate pension/WA accounts and send funds to self directed pension companies who collateralize the funds with a note, and are then invested in Prime Bank Instruments
Our "Facilitator" has access to the worlds top "trader"
"Trader" "Trading Bank" "Exit Buyer"
The way all banks or big banks make their money
Trades are sometimes referred to as "Tranches"
Only a select few are invited to participate in the trading program
Originally established by the elite families such as the Rockefellers, Gettys, Rothschilds, and the Carnegies.
Fractionalize or collateralize the funds
Fractional banking laws
Hypothecation with insurance companies ($1.2M needed for insurance company to "hypothecate" $l00M needed for the trade)
Investment periods quoted on contracts would be "90 banking days," "one year and one day," or "five years and one day"
Program developed to level out the yo-yo syndrome in the banking industry
"The information contained in this document is for information purpose only and is not intended as a solicitation nor an offer to sell any form of securities"
Invested funds are fully secured by a Bank Endorsed Guarantee
"Cash" Wire Transfer
C&F ASWP
Comfort Letter
"Conditional" S.W.I.F.T. Payment
CUSIP Number
Discounting L/Cs
"Trades are specifically established at a term of 1 year and 1 day, so it does not have to appear on the bank's balance sheet"
Foreign Bank Advice
Irrevocable, Divisible, Assignable, Transferable, Fractionable, Revolving, Confirmed L/C Payable 100% at Sight
Key-Tested Telex (KTT)
Market to Buy or Sell L/Cs
Proof of Funds
Proof of Product
Ready, Willing, and Able (R,W, & A)
Soft Probe
2% Performance Bond
Pre-advise issued by bank
Bank responsible commitment of funds
A claim that the "promoter" has a steady business relationship with a large international bank
A refusal to give "full disclosure" of all involved
The expression "mandated agent"
Standby letter of credit (SLC)

Source: http://www.treasurydirect.gov/instit/statreg/fraud/fraud_primebank.htm

Looking beyond Slovakia’s statistical miracle

By Vladimír Vaňo

REAL GDP growth as high as 2.7 percent for Slovakia in the second quarter appears rather impressive at first sight. This is especially so when placed alongside comparable regional peers, who are already mired in recession, as is the eurozone – a crucial export market for Slovak manufacturers. Hence, rather than indulging in an easy explanation of an ‘island of positive deviation’, a more detailed analysis of Slovakia’s performance is needed.

After the Czech Republic’s rate of real GDP growth fell from -0.7 percent in the first quarter to -1.2 percent in the second quarter, Slovakia’s neighbour is now heading for its second full-year recession in the past four years. An identical sequence of declines in real GDP (-0.7 percent and -1.2 percent respectively) has been recorded by Hungary, which also slipped into recession this year.

These two bigger neighbours share with Slovakia both their high extent of openness to foreign trade, but also a similar composition of export markets, dominated by eurozone countries. After stagnating in the first quarter, the real GDP of the eurozone declined by an annualised 0.4 percent in the second quarter and a negative development is set to unfold in the second half too, as signalled by forward-looking indicators. The purchasing managers’ index of activity in manufacturing in the eurozone in July dropped to its worst level since June 2009 – i.e. during the previous recession.

A glimpse at Slovak aggregate industrial activity might at first sight prompt optimism. Slovak industrial activity expanded by double digits in the first half of 2012 (+10.1 percent year-on-year), compared with a decline of 0.75 percent in Hungary and a slowdown to +1.1 percent in the Czech Republic. However, a closer look reveals that eight out of 15 industries in Slovakia reported a year-on-year decline in production in the first half of this year.

The overall growth can be credited to a handful of major Slovak industrial sectors, such as production of transport vehicles (+42 percent year-on-year) and production of electrical equipment (+10.3 percent year-on-year). Even these figures appear almost too good to be true, given the development in these sectors across Europe.

But this paradox is easy to explain by recalling the experience from a few years ago, when Slovakia first experienced the more favourable side of the process that could be labelled geographic optimisation of production capacities by multinational corporations. Within this, even industries facing sluggish or declining demand try to streamline their costs by making higher use of their facilities in cheaper CEE countries, while downsizing more radically those with a higher cost base, usually in western Europe.

As we have seen in the automotive sector, this process can take the form of higher utilisation of CEE facilities, or even new investments. Several of these large scale investments, including over €1-billion worth of new manufacturing lines kicked into operation at the turn of the year and explain the huge annual growth in the Slovak automotive sector.

Although the breakdown of second-quarter Slovak GDP has not yet been published, we can reasonably expect it to be rather similar to the composition from the beginning of the year.

In the first quarter of 2012, final household consumption (C) declined by 0.1 percent year-on-year, a picture that is unlikely to turn around abruptly as real retail sales turned negative (-0.73 percent) in the second quarter. Final government consumption (G) was almost stagnant at the beginning of the year (+0.4 percent), but the inevitable fiscal restraint after the elections will keep this item subdued for the rest of the year.

With the outlook for Slovakia’s export markets heading south rapidly (German new industrial orders declined by 4.8 percent year-on-year in the first half of 2012), Slovak companies are reconsidering their expansion and modernisation plans as well. Hence after a 5.7-percent increase in gross fixed capital (I) in 2011, real investments declined by 3.9 percent in the first quarter. The worst readings of German business expectations since June 2009 are unlikely to change this picture in the second quarter: Germany alone accounts for one fifth of Slovak exports.

Therefore, through a process of gradual elimination, we are left with the item which has been the backbone of Slovakia’s real GDP performance ever since the end of the 2009 recession: the improvement in net exports (NX). In 2011, Slovakia recorded its best foreign trade surplus on record, to the tune of €2.4 billion (3.5 percent of GDP). With imports slowing faster than exports, the trade surplus jumped to an identical amount during just the first half of 2012 (€2.5 billion). That means a staggering 161-percent increase from the same period last year, and a more than four-fold jump in the second quarter alone.

However, in the third and forth quarter, the current year’s figures will begin to be compared with the notably higher base from last year and hence the annual change can be expected to subside gradually. And along with it, the aggregate reading of Slovakia’s real GDP growth will subside too.
In light of the necessary consolidation of Slovakia’s public finances, the optimistic aggregate macroeconomic figures from the first half of 2012 are definitely no reason for complacency about the risks posed by the unfolding eurozone recession.

As the first draft of the 2013 state budget has already been introduced it is worth recalling that the Prudent Man Principle calls for planning for the worst, while hoping for the best. A rough patch for the Slovak economy and employment in Slovakia lies ahead.

Vladimír Vaňo is chief analyst at Volksbank Slovensko

Courtesy: http://spectator.sme.sk/articles/view/47389/11/looking_beyond_slovakias_statistical_miracle.html

What Exactly is an Investment Banker?

Believe it or not, there was a time when no one knew what a venture capitalist was. Today, if you're a venture capitalist, you know you've arrived because, not only do most people know what you do, but you also have your own cliché nickname: "vulture capitalist." Even the term "angel investor" has started to drift into mainstream vocabulary without being mistaken for some religious term.

However, when it comes to investment bankers, I find that many entrepreneurs don't have a clue as to who they are, what they do, and how they differ from a VC or an angel. This is a curious problem since the concept of an investment banker has existed far longer than either of the other two terms. So, why am I so hung up on the confusion surrounding this term? Because I'm an investment banker, and I believe that many entrepreneurs fail to consider what the people in my profession can do to help them raise money.

Let's start with the basics. What is an investment banker? The best overall definition I found was at Wikipedia.com: "Investment banks help companies and governments and their agencies to raise money by issuing and selling securities in the primary market. They assist public and private corporations in raising funds in the capital markets (both equity and debt), as well as in providing strategic advisory services for mergers, acquisitions and other types of financial transactions."

So, the simple answer is, investment banks help companies raise money by:

• Lending their expertise to a company to help it determine the best strategy and the best place to raise either debt or equity capital. Most companies don't have a clue as to how to do this, and a good investment banker can save them an enormous amount of time and money.
• Preparing all the necessary documents to accurately present the value proposition for funding and to protect both the company and the investor from any misunderstandings. This is more than just a business plan. Good investment banks prepare something called a private placement memorandum--or PPM--which is a legal document designed to protect both sides from making a bad investment.
• Ensuring that all government regulations have been followed in the raising of any capital. Typically, entrepreneurs raise capital in ways that violate SEC and NASD rules they didn't even know existed. Such ignorance could come back to bite them.

Investment bankers, unlike VCs, don't generally have funds they can tap into and immediately write a check. Instead, they have a network of investors (often both institutional and private, accredited angel investors) that trust the investment banker to bring them quality deals. Now, here's where a lot of confusion and, frankly, bad reputations are made. Generally, most investment bankers won't accept a client without a paid, up-front retainer. This tends to rub entrepreneurs the wrong way because they typically would prefer to "pay for performance" and not get stuck paying a retainer that produces nothing. So, how can entrepreneurs make sure they're getting someone who can truly help them?

Here are a couple of pointers for choosing an investment banker:

• Make sure both the brokerage and their principals have been licensed by NASD. You can verify this by looking them up at www.nasd.com. Being licensed means they're subject to regular NASD audits to ensure that everything they do complies with all government rules and regulations.
• Ask for examples of previous successes. This is important to establish a track record of actually raising money. However, no amount of past success will ever be able to predict any degree of future success in a specific company. The variables are always complicated and in flux.
• Before agreeing to pay a retainer, ask for a basic plan as to how, where and in what form they think your funding will come. If they can't give you an idea up front, they probably won't have a better one later.
• Although retainers will vary widely, a general rule of thumb is to allot $15,000 to $25,000 for raises under $5 million and $50,000 to $100,000 for raises in the $10 million to $50 million range.
• Finally, ask them what your retainer will be used for and how it will be paid. The best answer goes something like this: Your retainer will be paid over a period of two to three months, usually in three payments. The first two-thirds of the time will be used to conduct due diligence on you, your idea, your technology and, in general, your total value proposition. If they're not 100 percent convinced that your idea is fundable, they should stop all work and tell you why. Unfortunately, you'll be out, at most, two-thirds of your retainer, but you'll be spared the pain--and expense--of trying to sell a lost cause to unsympathetic investors. The last third of the time will be spent preparing your PPM and all associated marketing documents to help raise the capital they ultimately feel is appropriate.

Hiring a good investment banker can be one of the smartest decisions an entrepreneur can make. The banker will teach them things they couldn't learn from anyone else and, most importantly, will help them reach their funding targets faster than most any other route (assuming, of course, their idea is fundable). Even if an idea isn't viable, an investment banker is probably the most cost-effective way to find out your concept lacks investor appeal than any other alternative.

Courtesy: http://www.entrepreneur.com/article/179958

Jim Casparie is the "Raising Money" coach at Entrepreneur.com and the founder and CEO ofThe Venture Alliance, a national firm based in Irvine, California, that's dedicated to getting companies funded.

Focus on regulation - US study examines strengths and weaknesses of Libor and its alternatives

By: David Walker

Libor, one of the fundamental measures used in capital markets, has now been widely discredited due to the unfolding scandal of its production. However, as practitioners hunt for replacements, research by Finadium suggests the major alternatives also have their own strengths and weaknesses.

The research house based in Massachusetts says weaning the present benchmark off $800trn of assets - mostly loans and debt instruments - is "a daunting task".

In a comprehensive report on Libor and its alternatives, author and senior consultant Jonathan Cooper writes: "The usefulness of Libor had been suspect for years; it was advertised as an executable rate that reflected low and homogeneous counterparty credit risk, but the wheels came off during the financial crisis."

The researchers explain false daily Libor submissions by banks - revealed as Barclays admitted its own Libor quotes were less than accurate - are "just the start, [and] the weaknesses in Libor go far beyond the current scintillating scandal," he writes.

Quotes for Libor are meant to reflect rates that banks pay to deal between one another, so they necessarily include elements of credit risk, which can take pre-eminence in stressed moments, the report notes.

Another weakness is Libor quotes represent non-binding offers rather than actual trades, Finadium adds.

Another ‘weakness' now might be Libor's discrediting in the public's eyes although Finadium says that, while the scandal has "given the regulators and public (yet) another reason to suspect intentional wrongdoing in financial markets, the problems are, as usual, more nuanced and layered than the sound bites."

Cooper concludes his comments on Libor's shortcomings by noting: "Even traders quoting it on a daily basis have no one rate to guide them, but instead go through a process of triangulation to find the best figure. When there is no data on actual trades, inserting a value for LIBOR becomes a matter of guesswork."

The report noted here the spread between the highest and lowest quotes for three month Libor in the month after Lehman Brothers' collapse increased from just 7bps to 115bps.

What should one use instead, if a replacement is to be found?

Maybe Fed Funds, and its derivative Overnight Index Swaps?

But these each rely on "a robust underlying Federal Funds loan market, and decisive policy actions by US regulators have greatly diminished recent loan volumes", Finadium says.

"The Fed Funds rate is subject to substantial market and technical factors, including changes in Reg D and FDIC insurance rules that have reduced its liquidity by 80% since early 2008. And Fed Funds, like LIBOR, are unsecured deposits.."

What about repo then?

This is "the alternative with promise" according to Finadium, "and specifically repo on ‘safe assets' like US Treasuries, Agencies, and Mortgage-Backed Securities.

But Finadium's Cooper adds: "Repo can be very ‘clubby' and lacks transparency, a major concern for regulators thinking about shadow banking. This is changing however, with the growing popularity of repo indices and the licensing of these indices by NYSE Liffe for a repo futures product."

The repo business has traditionally been opaque - notwithstanding new repo indices the DTCC and ICAP have created - and "not without its issues in the financial crisis. It is also part of the shadow banking investigations currently underway by the Financial Stability Board," Finadium says.

"Ultimately, we believe that the markets will turn to the secured collateral of repo as the solution, although there are multiple hurdles that need to be overcome," Finadium concludes.

For more on Finadium including details of its various other reports see www.finadium.com.

Courtesy: http://www.investmenteurope.net/investment-europe/news/2199399/focus-on-regulation-us-study-examines-strengths-and-weaknesses-of-libor-and-its-alternatives